Citibank can announce the sale of Indian consumer business to Axis Bank on March 30, CNBC-TV18 reported. The measure of agreement is estimated to be around $ 2 billion with related milestone payments, the report said. This includes a Citi customer base of 2.6 million credit card holders.
Furthermore, as part of an agreement, Citibank will continue to serve customers during the integration period so that the transition is smooth and nothing is uncomfortable.
While Citi declined to comment, Axis Bank said that she would hold a press conference on the development of strategic business after marketing hours today.
Last year, Citibank said that it would come out of consumer franchises in 13 markets, including India, and focused on the business of institutional management and more profitable wealth. Indian Consumer Banking Business consists of credit cards, home loans and retail banking.
The bank’s axis emerged as the main buyer after defeating rivals such as boxes, other personal lenders reported “more aggressive” and have submitted a lower bid of the axis. Other factors such as work security for current Citigroup employees, competition issues, and more are also considered before receiving the last call.
Wall Street giants have 35 branches in India and close to 4,000 employees. The customer base is around 2.5 million account holders with 1.2 million loan accounts. Citi has been in India for decades and is among the first banks to introduce Indian credit cards in 1987.
At 10:40 a.m., AXIS Bank shares traded 3.5 percent higher at RS 763.80 each at BSE, while Sensex Benchmark was at 58,554.97, up 611.32 points or 1.06 percent.
The post AXIS Bank Will Acquire Citi Consumer Business in India, Today’s Announcement first appeared on Businessely.com.
